Role of Warehouse in Future Market

INTRODUCTION Among the investment avenues, commodity prospectives trading is a fast evolution sector with huge untapped potential, along with the financial grocery stores. The study difference between commodity and financial food markets is that, in commodities futures corporeal delivery takes place where as in the capital market it does not. In these markets, there are farmers, industrialists, warehouses, consumers, dealers and traders, who buy and contend commodities. thither are warehouses, which stores commodities and there are consumers, who consume them eventually. In the Indian context, warehouses are necessary for the commodity sector and commodity future trading especially for farmers because agricultural commodities constitute a study segment of the Indian economy. When the intention of warehouse is necessary The role of a warehouse is most necessary in the spot market where a farmer after having harvested his crop sells them to commission agents who in turn sells them to a Mandi. The Traders in Mandi may then sell it to a large consumer or to a trader who in turn will sell it to some other consumer, industry, exporter or miller at the right time and right price. The Goods during this geological period are stored in the warehouse.

It is seen that today 80% of the warehousing cleverness is used by the Government for storing various commodities under the commonplace Distribution System and for storing fertilizers Commodities form almost 58 pct of Indias Gross Domestic Product out of which 22 portion is agriculture, and two third of the population depend up on agriculture for livelihood. Warehousing forms the basic platform of delivery ground trading in commodity futures. Warehouses play an important role in commodities futures, as most of trades are settled with delivery. That is, if the seller chooses to handover the commodity instead of the difference in cash, the buyer essential take physical delivery of the underlying asset. Hence, warehouses play a significant and decisive... If you want to get a full essay, redact it on our website: Orderessay

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